Personal Finance: Turning Money into Wealth (7th Edition) (Prentice Hall Series in Finance)
Personal Finance: Turning Money into Wealth (7th Edition) (Prentice Hall Series in Finance)
7th Edition
ISBN: 9780133856439
Author: Arthur J. Keown
Publisher: PEARSON
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Chapter 11, Problem 11PA
Summary Introduction

To describe:

The behaviors with appropriate bias.

Introduction:

Financial personality and the money refers some of the understanding of the people’s behavior as they invest or trade in securities and to avoid the tricks that is playing on a person’s mind.

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A company currently pays a dividend of $3.6 per share (D0 = $3.6). It is estimated that the company's dividend will grow at a rate of 19% per year for the next 2 years, and then at a constant rate of 6% thereafter. The company's stock has a beta of 1.4, the risk-free rate is 8.5%, and the market risk premium is 4.5%. What is your estimate of the stock's current price? Do not round intermediate calculations. Round your answer to the nearest cent.
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8 Common Investor Biases (And How to Overcome Them); Author: Next Level Life;https://www.youtube.com/watch?v=7btv02RgCzo;License: Standard Youtube License